Humana is an attractive addition to other giant insurance companies because of its strength in Medicare prescription plans and Medicare Advantage plans. The retirements of the baby boomers are swelling Medicare’s rolls.

According to a Bloomberg analysis, Aetna now gets 24 percent of its revenue from Medicare business. The combined company would get about 47 percent of its revenue from Medicare and Medicaid.

The merger announcement forecasts $1.25 billion in operating cost reductions. How much of those efficiencies will require job reductions is unknown. Aetna has 6,100 employees in Connecticut, the most of any health insurer in the Insurance Capital.

Denise

Denise Early is an independent insurance broker in Tucson, Arizona. She is interested in policy and the politics of Medicare. She enjoys telling the stories of people she meets and sees herself as an advocate for her clients. She served in the Peace Corps and has a Masters degree in International Management.

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Medicareblog.org is not affiliated with Medicare or Social Security. Posts on this blog are meant to provide information and insight into many aspects of Medicare. Denise s a licensed insurance agent in Arizona.